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A Summary of Financial and Performance Reports Submitted by Regional Planning Commissions

October 2015

Report Number 16-005

Overall Conclusion

All 24 regional planning commissions (RPCs) in Texas submitted all statutorily required financial, asset disposal, productivity, performance, and salary reports to the State Auditor's Office. According to their most recent audited annual financial reports for fiscal year 2014, the 24 RPCs received $877,155,713 in revenues.

The RPCs' audited annual financial reports contained all the elements required by Texas Local Government Code, Chapter 391. However, with regard to salary schedules, 6 (26 percent) of the 23 RPCs that were statutorily required to submit a salary schedule to the State Auditor's Office did so after the due date, and 2 (9 percent) of the 23 RPCs submitted salary schedules with positions that exceeded the state classification salary schedules. One RPC was not statutorily required to submit a salary schedule to the State Auditor's Office.

The information in this report covers RPC reports that the State Auditor’s Office obtained between September 1, 2014, and August 31, 2015, unless otherwise indicated in the RPC chapter.

Audited Annual Financial Reports

External certified public accountants (CPAs) issued unmodified opinions on the financial statements for all 24 RPCs. However, for 1 (4 percent) of the 24 RPCs' audited annual financial reports, the CPA identified a significant deficiency over financial reporting. That RPC was the Texoma Council of Governments. Management of the Texoma Council of Governments indicated that it had taken steps to address the significant deficiency. All of the audited annual financial reports contained the elements required by Texas Local Government Code, Chapter 391.

Salary Reports

All 23 RPCs that were statutorily required to submit a salary schedule submitted a salary schedule to the State Auditor's Office. Six RPCs submitted the salary schedule after the due date. Texas Local Government Code, Section 391.0117, requires an RPC to submit its salary schedule, including the salaries of all exempt positions, to the State Auditor no later than the 45th day before the date of the beginning of the RPC's fiscal year. In addition, maximum salaries for two RPCs exceeded the state classification salary schedule for some positions. Texas Local Government Code, Section 391.0117, requires an RPC to adopt a salary schedule that does not exceed the state salary schedule for classified positions as prescribed by the General Appropriations Act adopted by the most recent Legislature. (See Chapters 1-A through 1-X for more information about each RPC's compliance with that requirement.)

One of the 24 RPCs, the Houston-Galveston Area Council, was not statutorily required to submit a salary schedule to the State Auditor's Office under Texas Local Government Code, Section 301.0117(f).

In addition, two RPCs submitted their prior-year salary schedules within the review for this report; therefore, those prior-year salary schedules were submitted after the required due dates. However, both RPCs submitted their current salary schedules before the required due dates.

RPC's Programs

The information the RPCs submitted to the State Auditor's Office indicated that the RPCs have multiple programs and functions. According to the RPCs' audited annual financial reports, some of the programs on which the RPCs spent the largest amounts of funds included workforce programs, disaster recovery, and transportation.

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